I’m 51, earn $129K and have $165K in my 401(k). Can I afford to retire when my husband, 59, draws Social Security at 62?
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“He is retired from a state job and receives a pension that nets around $3,600 per month, as well as lifelong health insurance for both of us.”
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real estate
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June 27, 2025
04:41 PM
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Advanced ➔ Results The MoneyistI’m 51, earn $129K and have $165K in my 401(k)
Can I afford to retire when my husband, 59, draws Social Security at 62. ‘He is retired from a state job and receives a pension that nets around $3,600 per month, as well as lifelong health insurance for both of us’Last d: June 27, 2025 at 12:41 p
ETFirst Published: June 18, 2025 at 5:15 a
ETResizeListen(8 min)“We would be downsizing our house and ly moving to a state with lower perty taxes (we currently in Texas). ” (Photo subjects are models. ) Photo: Getty Images/iStockphotoDear Quentin,I really appreciate your column and the advice you vide
I have been considering “retiring” early to have more time with my husband during our younger years
We were both married for more than 20 years each
We met when I was 46 and he was 54
Our divorces did cause us quite a bit of financial loss, and we have $105,000 in combined debt, not including our house payment, which is $2,200
I’m currently 51 years old, and my husband is 59
He is retired from a state job and receives a pension that nets around $3,600 per month, as well as lifelong health insurance for both of us
Once he reaches 62, we estimate his Social Security will vide apximately $1,800 net per month
In four months, he can cash out a Roth IRA, which would pay off our outstanding debt, minus our house
I earn $129,000 per year
I contribute 15% to my 401(k), which is currently valued at $165,000
I also rolled over an old 401(k) with $125,000 to be managed by a financial adviser
Can I quit working in three years — when my husband begins collecting Social Security
I plan to stop contributing to my 401(k) at that point
How much do you anticipate my account would be worth when I reach 59 1/2
The money my financial adviser manages has been earning apximately 9% per year, and my employer matches 6% of my compensation
We would be downsizing our house and ly moving to a state with lower perty taxes (we currently in Texas)
What do you think I should do
Should I retire early and join my husband on this new adventure
Thank you in advance for your advice
The WifeRelated: ‘This flies in the face of my morals and ethics’: My father cut my sisters out of his six-figure estate
You won’t be able to make withdrawals from your 401(k) for another eight years
You, too, may be forced to take your Social Security benefits before your full retirement age
Photo: MarketWatch illustrationDear Wife,Think twice before you retire early
Your husband will have to pay 40% of his combined pension and Social Security on your house payment, and that’s after he uses his Roth IRA to pay off your combined debt
Even if your $165,000 401(k) were worth $195,000 after three years — assuming a relatively conservative 6% growth — you would still need that money to last you for another 30 years
It’s simply not enough, even with your husband’s state pension
You won’t be able to make withdrawals from your 401(k) for another eight years and you too may be forced to take your Social Security benefits before your full retirement age
By claiming his Social Security at 62, he is also settling for significantly less than his full amount if he waited
You have a long wait until you qualify for Social Security, and your slightly throwaway that your husband will cash out his Roth IRA to pay your debts also gives me pause
You have a relatively secure six-figure income and your employer is contributing a 6% match, so why throw that away now just because your husband is ready to retire
Unless you absolutely hate your job and you feel it’s making you sick, there’s a lot to be said for these peak earning years
Unless you absolutely hate your job and feel it’s making you sick, there’s a lot to be said for these peak earning years and the meaning, social and structure that work brings you
You might miss it when it’s gone and, even if you’re glad to see the back of it, you will certainly miss the financial independence and security of knowing that you are building a nest egg for retirement
Do you really want to be that dependent on your husband
Let’s say, for the sake of argument, that you had $400,000 collectively in both 401(k)s in three years
Using the 4% rule — withdrawing 4% of your nest annually over a 30-year period — you would take out $16,000 a year
Adults, on average, say they’ll need $1. 46 million to retire comfortably, up 15% over the $1. 27 million reported last year, according to a recent study by Northwestern Mutual
That doesn’t put you in the crosshairs for an easy retirement
Keep doing what you’re doingYou’re doing OK
Some 75% of non-retired adults had at least some retirement savings, but 25% had no retirement savings, according to one report by the Federal Reserve
Oftentimes, the clue is in the question
If you are that worried your ability to retire, keep working and accumulating savings
You want more leisure time with your husband, but will you also have more security and more peace of mind
The Social Security Administration and AARP vide retirement calculators that help determine whether you have enough money to retire. (As for your other point, Hawaii has the lowest perty taxes, per this guide from SmartAsset
But that doesn’t necessarily mean a lower cost of living. ) You can input your assets, jected retirement spending, life-expectancy assumptions and tax estimates
Longevity is a big unknown
Female who reaches 65 can expect to to around 86. 7, according to the SSA
It’s great that you are in a happy marriage; that will help you in your retirement years, but will your income match your retirement goals
If you retire at 54, could you hold off on claiming Social Security until you can maximize your benefits at 70
Many people — 28. 4% of men and 26. 5% of women — take Social Security when they reach full retirement age, which is between 65 and 67, depending on the year a person was born
Meanwhile, 8. 4% of men and 9. 3% of women wait until at least 70 to take their benefits, according to the SSA
I wonder how much early retirement, as exciting as the spect might be, is your idea and how much is pressure from your husband, who is understandably eager to embark on his new post-work life
Planning can be fun too
What kind of retirement would you after you downsize and move to a new state
It’s great that you are in a happy marriage; that will help you in your retirement years, but will your income match your retirement goals
Longevity and lifestyle requires a healthy investment income
Related: ‘My wife and I are very grateful’: Our son wants to pay off our mortgage before we retire
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By submitting your story to Dow Jones & Co. , the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties. the Author Quentin FottrellQuentin Fottrell is MarketWatch's Managing Editor-Advice and The Moneyist columnist
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